Centre may not introduce Cryptocurrency Bill in ongoing Winter session: Sources

The Centre's proposed bill on cryptocurrency is unlikely to be brought in the ongoing session of the parliament, sources have informed on Wednesday. Ahead of the Winter Session, the Centre had listed the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 on the official website of the Lok Sabha. Details of the proposed bill had revealed that the suggested regulations will 'outlaw all private cryptocurrencies' in India.

However, it is now being reported that the government is unlikely to bring the bill in the ongoing winter session. Whenever a bill will be brought, it will be referred to the parliamentary standing committee for wider deliberations with stakeholders, PTI quoting sources stated.

Centre's stand on cryptocurrencies

Earlier, the listing of Centre's crypto bill had sent markets into a spiral after it was reported that there will be a complete ban on all private cryptocurrencies. The Lok Sabha website had stated that the bill was being introduced to "create a facilitative framework" for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI). "The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses," the Parliament website had mentioned.

As crypto markets went into panic, sources revealed that a window will be given to investors with money already in cryptocurrencies to take out investments. The ban on cryptocurrencies in India will only be activated after the window period is over, Republic Media Network had reported.

Months-long deliberations have been held between the Centre and concerned Ministries over Cryptocurrency and its related issues. The Parliamentary Standing Committee on Finance, chaired by BJP member Jayant Sinha, had also met the representatives of crypto exchanges, blockchain and Crypto Assets Council (BACC), among others, and arrived at a conclusion that cryptocurrencies should not be banned but should be regulated. On November 13, PM Modi had chaired a meeting on the way forward for cryptocurrency with a special focus on the issue of misleading non-transparent advertising.

Meanwhile, the Reserve Bank of India (RBI) has stated that it will establish its own digital money since investor money security and deceptive media promotions on such investment have long been a source of concern.

(With agency inputs)